Schlumberger, Subsea 7, and Aker Solutions will establish a subsea engineering company.
OSLO On Tuesday, U.S. engineering giant Schlumberger (NYSE:SLB) and Norway’s Aker Solutions announced plans to merge their undersea oil and gas construction businesses and bring in a third competitor, Oslo-listed Subsea 7 (OTC:SUBCY).
Aker Solutions will get $700 million in cash and Schlumberger shares as part of the transaction, and the Norwegian business expects to record a profit of around $1 billion at the time of completion.
The transaction gives Schlumberger a 70% ownership in the prospective joint venture, while Aker Solutions receives 20% and Subsea 7 10%, according to a joint statement from the firms.
They said that the expected annual synergy potential was more than $100 million over the medium term. The merged organisation would have about 9,000 people worldwide.
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The deal is anticipated to be finalised during the second half of 2023.
Schlumberger, Subsea 7, and Aker Solutions will establish a subsea engineering company.
